What you are looking at here is an interesting ratio. First part is the ETHUSD/ETHEUR ratio, as given by Kraken. This simply gives the EURUSD ratio in terms of ETH. Theoretically, this should be the exact EURUSD as given by forex, but it sometimes isn't. So if we look at the (ETHUSD/ETHEUR) ratio and compare it to the real EURUSD ratio, it looks like this:...
Above the desk of one of the greatest traders of all times, Paul Tudor Jones, is a piece of paper stuck on the wall with the words written "LOSERS AVERAGE LOSERS". Wow this is powerful stuff people especially when one of history's greatest "Trend Trader" has this above his desk to keep him focused. But what does this mean? Why is this important to understand? Are...
This is an observation with educational purposes, for myself and for the people who might find it useful. First of all, the results that are shown here are made from the last 13 trades that were published and TRIGGERED, here in the website. Each one of those trades are measure in terms of risk to reward, in other words terms of risk units. Remember when you are...
I am ever so grateful that many of the responses and messages I get are from Investors from 18-30. As my grandmother used to say "tickles me pink" to see you saving for your future. At least that's what you should be doing. I understand from experience that when you are just starting out you do not have a lot to invest, but you want to. This is a good thing;...
** EDUCATION Protip : Traders use "Nice numbers" aka (123456789) as common sell/buy orders making these levels react strongly so when setting your orders use "Nice Numbers" **
Its worth considering what market cycles can tell us about when this run will end. I won't (can't) explain the logic behind cycles, but they appear in every aspect of nature, which includes human behaviour. Seasonality is a well known example. Using the Dow Jones as a barometer, its clear that there were 7 years between the 2002 and 2009 lows. We can't...
In almost every post I have stated the MOST Important tool in any traders tool box is the TREND! I cannot emphasize this enough. I even posted an update yesterday on how you can trade the trend void of EW and Fibb. They are only add-ons, and not the main tool. I see there are more opinions on the direction of Bitcoin then there are charts on TV (ok i'm old school...
* Holding the mid 1.1900's, EUR/USD looks comfortable inside a range which looks set to play out until the FOMC mid week. * Drivers all set to come from the US side this week, with the FOMC meeting in focus on Wednesday. Next ECB not till late Oct, and tapering expectations getting priced in - it's now a matter to what extent. * On the downside, 1.1800-25...
INVESTMENT VERSUSES SPECULATION What is an investor? An investment operation is one which upon thorough analysis promises safety of principle and an adequate return. Operations not meeting these requirements are speculative. The DOTCOM bubble started around 1997, peaked around 2000 and ultimately burst in 2002. The bubble revolved around speculative...
These are the rules I think will work best for this speculative/trading style account. This is an aggressive growth stance and I use this account to place trades I think are too risky for my other retirement based accounts. I have raised the % limits per trade and removed the restriction of a full pre-trade checklist that I require in my other accounts. I will...
There are two types of VIX or VIX product (i.e., VXX, UVXY, and SVXY) trades that I like: (a) "Term Structure" and (b) "Contango Drift" trades. "Term Structure" Trades "Term Structure" trades are only done in VIX, since only VIX has an underlying future (/VX) and a "term structure," with /VX futures prices generally priced at increasingly higher prices as...
First of all, this is a long-term investing style, if you are not that kind of person then it’s not for you. Let’s say you can spare $500 a month. By allowing dollar cost averaging into just 3 index funds, $300 into one that holds total US stock market, $100 into once that hold foreign stock market and $100 into one that hold US bonds – you can say you hold...
The idea of a derivative is powerful and especially useful in trading. We often don't care so much what the price is, but how it moves. For that reason the velocity, acceleration, and rarely the jerk of price is valuable information. There are a lot of numerical issues with taking time derivatives of price, the biggest of which, in my eyes, is that all transforms...
To get a a graph of the portfolio, I added the S&P500 and TLT together. But to keep them roughly equal I used 50% of the price of $SPY and 100% of the price of $TLT. I create the graph by typing the following into the symbol window: SPY*.5+TLT It shows also that the mood of the country might have been pretty bad going into the election since the combined...
Point A: George Soros shorted GBP from the very top and made 1 billion dollars in profit, that's why he's also known as the man who broke bank of England. Normal day traders will look into the past and will put all kinds of lines and indicators there to give them a relief that it was an indicator or pattern which moved the market BUT the reality is far away from...
The main traded cryptos are now correlated. What that means? Think about it! ;)
I think the share will break out either way once we see the extend of commitment from the OPEC nations and the damage from the Texas hurricane.
How do you trade when important news are scheduled to come out? Do you fall in A or B case or do you usually go with any of 1, 2 or 3 approaches?